New American specializes in home lending and offers a variety of mortgage loan options to suit your needs. For first-time homeowners, a conventional loan requires a credit score of at least 620 and a minimum 3% down payment. Other loan products offered by New American Funding may have different requirements.

At a Glance: New American Mortgages

  • New American

    • Beside the information listed below, the minimum down payment requirement of various loan products isn’t available on the lender’s website Conventional loan: 3% USDA loan: 0% (No down payment required) VA loan: 0% (No down payment required) FHA loan: 3.5% Jumbo loan: 20% to avoid paying private mortgage insurance Reverse mortgage: Not applicable Buydown loan: Not available on the lender’s website — contact a lender representative for more information. I CAN mortgage: 5% Minimum Down Payment
    • Conventional USDA loan VA loan FHA loan Jumbo loan Reverse mortgage Buydown loan I CAN mortgage Loan Products Offered
    • New American Funding operates in all states except New York and HawaiiStates of Operation
    • Yes Online Application

    New American

New American Mortgage Loan Types, Details and Requirements

The New American lender review on MoneyGeek can help you better understand the company's mortgage options, application process, requirements and any fees you may encounter.

Mortgage Types Offered

  • Conventional
  • USDA loan
  • VA loan
  • FHA loan
  • Jumbo loan
  • Reverse mortgage
  • Buydown loan
  • I CAN mortgage

Mortgage Rates

New American Funding offers both fixed-rate and adjustable-rate mortgages for its loan products. With a fixed-rate loan, your rate won’t fluctuate with the market like an adjustable-rate loan. However, you may pay a higher starting rate with a fixed-rate loan during the initial repayment period. Rates are ultimately variable based on loan type, borrower credit history, loan amount and down payment amount, but we’ve included a few of the potential options listed on the lender’s website to give you a general idea.

Fixed-Rate Loan Options as of June 2022

  • 30 Year Fixed-Rate Loan: 5.500% to 5.802%
  • 15 Year Fixed-Rate Loan: 4.500% to 4.998%
  • FHA 30 Year Fixed-Rate Loan (FHA): 4.875% to 5.900%
  • VA 30 Year Fixed-Rate Loan (VA): 4.875% to 5.496%

Adjustable-Rate Loan Terms as of June 2022

  • 5 Year ARM (FHA, VA, conventional and jumbo): initial fixed period of 5 years, then the rate adjusts.
  • 7 Year ARM (conventional and jumbo): initial fixed period of 7 years, then the rate adjusts.
  • 10 Year ARM (conventional and jumbo): initial fixed period of 10 years, then the rate adjusts.

Complete the prequalification procedure or call (800) 890-1057 to speak with one of their licensed loan officers for an accurate quote.

Additional Fees

There are several additional New American Funding fees to take note of. These include document request fees, which cost around $10 to $20 depending on the requested document.

There are also different payment-related fees like mortgage late fee (dependent on your loan type), pay-by-phone fee ($7.50), wire fee ($15) and non-sufficient/returned check fee ($25). Most loan types do not have prepayment penalties.

Servicing fees are also charged by the lender. This includes a $250 assumption fee and a $300 recast fee.

New American Funding may have some other hidden fees that are not disclosed on its website. To receive an approximate cost, we recommend that you contact one of the lender’s agents.

Minimum Borrowing Requirements

In New American Funding, different loan products have different borrowing requirements.

Conventional Loan

To apply for a conventional loan, you must fill out a mortgage application and provide details about your past, credit history and credit score. Applicants must show proof of income, assets and a source of down payment or gift.

The lender requires that all applicants have a minimum credit score of 620 and the ability to make a downpayment of 3%. Although 3% is the minimum, it’s normally recommended that borrowers put down up to 20%. You may be rejected for a conventional loan if you fit any of the following scenarios: you’ve filed for bankruptcy or have been foreclosed on in the last seven years, you have a debt-to-income ratio greater than 43% or you make less than a 20% downpayment.


USDA loans require that applicants and households fulfill certain income standards specific to where they live. Borrowers must be U.S. Citizen, U.S. non-citizen national or Qualified Alien. In addition, the property must be located in an eligible area. You can find out if your area qualifies, by reviewing information for the USDA Rural Development Single Family Housing Guaranteed Loan Program.

Depending on your credit criteria, your monthly payment (principal, interest, insurance and taxes) cannot exceed 29% to 32% of your monthly income. Furthermore, you must have a consistent source of revenue, with most types of income requiring at least a 12 months worth of documentation. Finally, a good credit history — no accounts in collections in the previous year — is necessary.

VA Home Loan

A Certificate of Eligibility (COE) from the VA may be necessary, depending on the type of VA loan, to obtain financing. However, the lender can quickly request this for you after you contact them with your request.

To qualify for a VA loan, you must be one of the following requirements: 90 days of service during wartime, 181 continuous days of active service during peacetime, 6 or more years of service in the National Guard or Reserves or being the un-remarried, surviving spouse of a service member who died in the line of duty, or as a result of a service-related disability

In addition, you must also meet lender requirements for income verification, credit score and debt-to-income ratio. Borrowers are often obliged to relocate into their new property within 60 days of purchase and to utilize it as their primary residence.

FHA Loan

FHA loans typically have more forgiving credit standards but stricter loan requirements. To qualify for an FHA loan, you don't need flawless credit, but you’ll pay an upfront mortgage insurance premium of 1.75%, in addition to monthly mortgage insurance. If you’re self-employed, you’ll need to provide two years of tax records, as well as an up-to-date balance sheet and profit and loss statement. This type of loan permits gifts or grants toward the down payment and sellers, builders or lenders can cover some of the borrower's closing expenses. However, there's also a stricter house inspection criteria that’s required for this loan.

Jumbo Loan

Because a jumbo loan is created for those who wouldn't necessarily qualify for a conventional loan, applicants will almost certainly need a higher credit score to qualify, as the lender's risk is higher without the backing of Fannie Mae or Freddie Mac.

Primary residences, vacation houses, and investment properties are all eligible for jumbo loans. The loan amount may exceed the typical maximum of $647,200 (or $970,800 in some areas)

Depending on the size of the loan, you'll need to prove that you have enough cash on hand to meet your installments. Pay stubs and two years' worth of W2 forms and 1099s are likely required as verification. A second appraisal of the house you want to buy may be required.

Reverse Mortgage

To qualify for a reverse mortgage, borrowers must be at least 62 years of age or older and be able to afford to pay taxes, insurance and, if necessary, HOA fees. They can own their house entirely or have a modest mortgage debt that can be paid off with the reverse loan proceeds at closing. The applicant must also have sufficient funds to cover continuing property costs. Finally, all borrowers and non-borrowing spouses must undertake separate counseling prior to receiving the loan.

Buydown Loan

With the buydown loan option, borrowers can pay an additional upfront charge, in exchange for a temporary lower interest rate and payment on their mortgage. To determine if you’re eligible for this type of loan, you should contact the lender directly.

I CAN Mortgage

Because this loan product offers a wide range of terms (8 to 30 years), borrowers have greater freedom and flexibility to choose the best mortgage for their needs. To be eligible for this type of mortgage, you must agree to the payback terms between 8 and 30 years, have a minimum credit score of 620 and use the financing for a primary residence that’s a single-family, one-unit house, such as a townhouse or condominium.

New American Mortgage Application Requirements

New American Funding mortgage loan candidates must provide personal information as well as documentation supporting their financial status. Depending on what loan you’re applying for, you may need to provide other information, but in general, the following documents are required:


Two years of federal tax returns


Two years of W-2's/1099s


30 days of pay stub


Two months of bank statements

If you're self-employed, you aren’t required to provide W-2s or pay stubs. Also, you'll almost certainly require documents demonstrating your overall assets, monthly debt, credit information and home loan-to-value ratio.

Is New American Right for You?

Every mortgage loan lender is unique and there are several factors to consider when selecting the right one for you.

Who New American Is Perfect for

New American Funding offers such a diverse range of mortgage loan options that it can accommodate a wide variety of borrowers.

However, New American Funding also caters specifically to minorities and other specialized groups. Military Heroes Focus, for example, is a dynamic project aimed at increasing homeownership and professional opportunities for military service members, veterans and their families.

This lender is also a good choice for self-employed people looking for a mortgage loan because it might be tough to qualify for home finance if you are self-employed. The New American Funding staff is knowledgeable and well-equipped to assist self-employed borrowers through the mortgage process.

Who Should Not Choose New American

Even though New American Funding offers a fully online application, you still have to agree to receive phone calls or emails to get your personalized quote. Therefore, borrowers who want a full-digital experience may want to opt for a different lender.

Borrowers from New York and Hawaii will also have to look elsewhere for a mortgage loan because the lender does not offer loan products to borrowers in these states. Borrowers with poor credit may also not qualify.

How to Apply for a New American Mortgage Loan

The application process can differ from lender to lender. MoneyGeek outlined the steps needed to apply for a New American mortgage loan.



If you complete the application and submit the appropriate documentation, you might be pre-approved in as little as 24 to 48 hours. Two years of federal tax returns, two years of W-2s, 30 days of pay stubs and two months of bank statements are among the documents that must be presented. W-2s and paystubs are not required if you are self-employed.


Fill Out Application Form

New American Mortgage provides a fully online application where you’ll answer questions related to your loan type, property, loan details and your profile.


Wait for Pre-Approval

The underwriting staff at New American will examine your paperwork and run credit checks. If they have any questions or require additional information, they’ll contact you.


Review Loan Agreement

Your loan agreement will be sent to you after New American Funding has approved your loan. Examine the loan agreement's fees and interest rates to make sure you’re aware of and understand all the terms and conditions.


Sign the Loan Agreement

If you agree to all of the terms and conditions, you can sign the loan document. Although the entire procedure is completed online, you can text, phone or email a New American Funding representative for assistance.


Receive Funding

The financing department will send the payment to the escrow company after the lender gets final approval and the loan process is complete.


Make Payments

You may pay your loan online for free and at any time, but payments made after 10 p.m. Central Time will be processed the next business day. You can also pay through New American Funding's automated phone system or by check, both of which are free. Payment can also be made over the phone by one of the Customer Care Specialists. Western Union payments are also accepted.

What to Do if You Are Rejected by New American

Even if you prequalify, New American Funding has the right to reject your mortgage application. A lender might make this decision for a variety of reasons. Perhaps you have a low credit score, or the lender believes you lack sufficient assets to fulfill your mortgage payments.

If this happens, you should contact a customer service representative or a loan originator at New American Funding and ask why your loan was denied. They can also help you figure out an alternative option.

Before applying with a different lender, it’s important to understand why you were turned down and take the actions necessary to improve your chances of approval.

Frequently Asked Questions About Mortgages From New American

The goal of MoneyGeek's New American mortgage loan review is to help you make an informed decision when choosing a loan lender. Some of the most frequently asked questions concerning the company's mortgage products are included below: